Binance Coin

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BNB

How & Where to Buy Binance Coin (BNB)

Buying Binance Coin (BNB) for funds from your bank requires a 2-step process. You're going to buy some BTC or ETH from an exchange that accepts deposits from a debit card or bank account, and then you're going to transfer your newly bought crypto to a marketplace that sells BNB in exchange for bitcoin or Ether.

Binance Coin Price & Information

Current BNB price and historical price chart

Binance Coin Social Media

Technical Information

Start Date: 27/06/2017

What is Binance Coin

Binance Coin is the native currency of the Binance cryptocurrency exchange. The coin can be used for multiple purposes within the exchange, such as reducing exchange fees, listing fees, withdrawal fees and pretty much any other fee on the exchange.

History of Binance Coin

Binance is headed by Changpeng Zhao (founder of BijieTech and OKChain), Yi He and Da Hongfei. The company has a close working relationship with NEO cryptocurrency organisation. Binance went live in an ICO (Initial Coin Offering) in 2017 in which Binance Coins were distributed to ICO participants. A total of 200 million Binance Coins will be created, out of which only 100 million coins will remain in circulation after a series of planned company buy backs and destruction periods.

How Binance Coin Works

Binance coin can be purchased on the Binance exchange with popular cryptocurrencies like bitcoin, Ethereum and a few more. Once Binance coin is purchased, it can be used on the Binance cryptocurrency exchange for multiple purposes like exchange fees, listing fees and withdrawal fees. Once the Binance Coin is in the Binance account of the user, during every transaction, the user gets the option to use Binance Coin to pay the fees. This feature is activated in the Settings portion of the user profile. A user only needs to tick the “Activate Binance Coin to Pay for Fees” switch and fees will be reduced by a set percentage (currently 50%).

Why Binance Coin

Binance is one of the largest cryptocurrency exchanges in the world and as previously mentioned, owning Binance Coin and keeping it on the exchange in one’s trading account can lessen transaction fees on the Binance exchange. Its benefits include the following:

Steep Discount on Trades: When users choose to reduce the various fees in Binance exchange via activation of the Binance Coin option, they receive a high discount. The yearly discount will be 50%, 25%, 12.5% and 6.75%, starting from the first year.

Future of DEX Binance: Eventually, Binance plans to go fully decentralized and Binance Coins will be the ‘gas’ of the network. This will make the Binance Coins extremely valuable in the future.

Ethereum Assurance: As an ERC20 compliant token, Binance Coin will run natively on the Ethereum blockchain which will give the coins the solidity, security and advanced features of the Ethereum platform, including usage of Smart Contracts.

Repurchasing Plans: Binance will use 20% of their quarterly profit to buy back Binance Coins from their exchange. They will buy back and destroy a total of 100 million Binance Coins. With such a regular demand, it is estimated that Binance Coin’s price will remain elevated, particularly as the exchange grows in size.

Easy Convertibility: Users can easily exchange their Binance Coins for more popular cryptocurrencies like bitcoin, Ethereum or Dash and others. It is a coin pairing option on the exchange, along with bitcoin and Ethereum.

Talk About Binance Coin

2 Comments

As I understand, any coin represents the value of the company, similar to stocks in the stock markets. Shares X Price = Market Cap. Coins x price = Market Cap. Therefore in addition to using these coins for tradings costs, these coins value the worth of Bitfinance, which can be compared to the E-Trades or Fidelity’s of the world. Is this correct?

Most coins aren’t backed by any sort of company and are “decentralized,” meaning control of the coin is dictated by a group of users rather than a board of executives. While a coin’s market capitalization (market cap) can be calculated using a similar formula as a stock’s market cap (market cap = # coins x coin price), it is not an absolute indicator a coin’s value. Much like with stocks, the price of coins can be manipulated to make something seem more or less valuable than it actually is.

What’s interesting about Binance Coin is that it is backed by a company and indeed acts more like a “share” than say, bitcoin, for example. And since Binance Coin can be used to perform trades on binance.com and has other functions related to Binance, its arguable that the market cap of Binance Coin is somewhat tied to the company’s overall success. However, since Binance Coin is a cryptocurrency, it isn’t regulated by the same rules that govern the trading and issue of stocks, so it is important to be aware of this distinction.

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